Dive Brief:
- Cross-border freight from the U.S. to Canada and Mexico fell to $92.2 billion in June, a 6.4% decrease from last year's figure according to the Bureau of Transportation Statistics.
- All but one mode of freight transportation recorded a decreased value, with vessel transportation representing the biggest drop at 31%. Meanwhile, air cargo grew by 5% from year-to-year, driven by a 7.2% increase from Canada.
- Trucks remained the most utilized form of transport, however, carrying $60.6 billion (66%) of total trade. However, commodity value transported by trucks fell by $3.7 billion from the previous year.
Dive Insight:
June marked the 18th consecutive month of declining freight value when compared to the previous year, likely caused by declining oil prices. Vessels and pipeline transport continued to show the largest percentage drop compared to value carried the previous year, respectively falling by 19.7% and 15.6%.
Yet, the $3.7 billion drop for truck transport represented the largest absolute drop despite carrying an assortment of goods. In general, freight markets are stagnating nationwide as peak season demand slows due to the rise of e-commerce.
As a result, cross-border air transport is increasing in both value in demand, since e-commerce's tight fulfillment timeline requires the fastest method of transportation. The U.S. and Mexico recently signed a bilateral agreement to facilitate this form of international trade by opening all ports for air access.
